Florida Senate - 2019                                     SB 626
       
       
        
       By Senator Brandes
       
       
       
       
       
       24-00599A-19                                           2019626__
    1                        A bill to be entitled                      
    2         An act relating to insurer guaranty associations;
    3         amending s. 631.713, F.S.; revising applicability of
    4         part III of ch. 631, F.S., as to health maintenance
    5         organizations, long-term care insurance benefits,
    6         certain health care benefits, and certain structured
    7         settlement annuity benefits; amending s. 631.714,
    8         F.S.; defining the term “long-term care assessment
    9         obligations”; amending s. 631.716, F.S.; revising the
   10         number of members and composition of the Florida Life
   11         and Health Insurance Guaranty Association’s board of
   12         directors; specifying requirements relating to the
   13         director of the Health Maintenance Organization
   14         Consumer Assistance Plan to be confirmed to the
   15         association’s board; specifying rights of the director
   16         or his or her designee; deleting an obsolete
   17         provision; amending s. 631.717, F.S.; adding the
   18         reissuance of covered policies to a list of duties of
   19         the association relating to insolvent insurers;
   20         providing construction; specifying duties of the
   21         association as to potential long-term care insurer
   22         impairments or insolvencies, sharing information, and
   23         providing assistance to the Health Maintenance
   24         Organization Consumer Assistance Plan’s board of
   25         directors; revising applicability of a specified limit
   26         on the association’s liability for the contractual
   27         obligations of an insolvent insurer; conforming a
   28         provision to changes made by the act; requiring that
   29         the Department of Financial Services, rather than a
   30         receivership court, approve certain alternative
   31         policies or contracts; authorizing the board to file
   32         directly for actuarially justified rate or premium
   33         increases; amending s. 631.718, F.S.; specifying the
   34         calculation and allocation of Class B assessments for
   35         long-term care insurance; specifying a limit on
   36         certain assessments on a member insurer or member
   37         health maintenance organization; conforming provisions
   38         to changes made by the act; amending s. 631.721, F.S.;
   39         deleting an obsolete provision; revising the
   40         requirements of the association’s plan of operation
   41         relating to long-term care insurer impairments and
   42         insolvencies; conforming a cross-reference; creating
   43         s. 631.738, F.S.; providing applicability of certain
   44         provisions to certain member insurers; amending s.
   45         631.816, F.S.; adding duties of the board of directors
   46         of the Health Maintenance Organization Consumer
   47         Assistance Plan to conform to changes made by the act;
   48         amending s. 631.818, F.S.; adding to the duties of the
   49         plan to conform to changes made by the act; amending
   50         s. 631.819, F.S.; specifying requirements for long
   51         term care insurer impairment and insolvency
   52         assessments for member health maintenance
   53         organizations; requiring the plan to issue
   54         certificates of contribution to member health
   55         maintenance organizations paying certain assessments;
   56         specifying requirements of, and the use of, such
   57         certificates; amending s. 631.820, F.S.; conforming
   58         provisions to changes made by the act; amending s.
   59         631.821, F.S.; making a technical change; providing a
   60         directive to the Division of Law Revision; providing
   61         an effective date.
   62          
   63  Be It Enacted by the Legislature of the State of Florida:
   64  
   65         Section 1. Subsection (3) of section 631.713, Florida
   66  Statutes, is amended to read:
   67         631.713 Application of part.—
   68         (3) This part does not apply to:
   69         (a) That portion or part of a variable life insurance
   70  contract or variable annuity contract not guaranteed by an
   71  insurer.
   72         (b) That portion or part of any policy or contract under
   73  which the risk is borne by the policyholder.
   74         (c) Any policy or contract or part thereof assumed by the
   75  impaired or insolvent insurer under a contract of reinsurance,
   76  other than reinsurance for which assumption certificates have
   77  been issued.
   78         (d) Fraternal benefit societies as defined in s. 632.601.
   79         (e) Health maintenance organizations, except for
   80  assessments levied pursuant to ss. 631.715(2)(a)1.,
   81  631.718(3)(b), and 631.819(2)(c) for long-term care insurer
   82  impairments or insolvencies insurance.
   83         (f) Dental service plan insurance.
   84         (g) Pharmaceutical service plan insurance.
   85         (h) Optometric service plan insurance.
   86         (i) Ambulance service association insurance.
   87         (j) Preneed funeral merchandise or service contract
   88  insurance.
   89         (k) Prepaid health clinic insurance.
   90         (l) Any annuity contract or group annuity contract that is
   91  not issued to and owned by an individual, except to the extent
   92  of any annuity benefits:
   93         1. Guaranteed directly and not through an intermediary to
   94  an individual by an insurer under such contract or certificate;
   95         2. Under an annuity issued by an insurer under 26 U.S.C. s.
   96  408(b); or
   97         3. Under an annuity issued by an insurer and held by a
   98  custodian or trustee in accordance with 26 U.S.C. s. 408(a).
   99  
  100  This paragraph applies to every insolvency regardless of its
  101  date of inception, and an assessment base may not include
  102  premiums for such excluded products.
  103         (m) Any federal employees’ group policy or contract that,
  104  under 5 U.S.C. s. 8909(f), is prohibited from being subject to
  105  an assessment under s. 631.718.
  106         (n) Except as provided in this paragraph, a portion of a
  107  policy or contract, to the extent that the rate of interest on
  108  which the policy or contract is based, or the interest rate,
  109  crediting rate, or similar factor determined by use of an index
  110  or other external reference stated in the policy or contract
  111  employed in calculating returns or changes in value:
  112         1. Averaged over the period of 4 years immediately
  113  preceding the date on which the member insurer becomes an
  114  impaired or insolvent insurer under this part, whichever is
  115  earlier, exceeds the rate of interest determined by subtracting
  116  2 percentage points from Moody’s Corporate Bond Yield Average
  117  averaged for that same 4-year period or for such lesser period
  118  if the policy or contract was issued less than 4 years before
  119  the member insurer becomes an impaired or insolvent insurer
  120  under this part, whichever is earlier; and
  121         2. On and after the date on which the member insurer
  122  becomes an impaired or insolvent insurer under this part,
  123  whichever is earlier, exceeds the rate of interest determined by
  124  subtracting 3 percentage points from the most current version of
  125  Moody’s Corporate Bond Yield Average.
  126  
  127  This paragraph does not apply to any portion of a policy or
  128  contract, including a rider, which provides long-term care or
  129  any other health insurance benefit.
  130         (o) A portion of a policy or contract to the extent the
  131  policy or contract provides for interest or other changes in
  132  value to be determined by the use of an index or other external
  133  reference stated in the policy or contract, but which has not
  134  been credited to the policy or contract, or as to which the
  135  policy or contract owner’s rights are subject to forfeiture, as
  136  of the date the member insurer becomes an impaired or insolvent
  137  insurer under this part. However, if the interest or change in
  138  value is credited less frequently than annually as determined by
  139  using the procedures defined in the policy or contract, interest
  140  or change in value shall be credited by using the procedure
  141  defined in the policy or contract as if the contractual date of
  142  crediting interest or changing values was the date of impairment
  143  or insolvency, whichever is earlier, and shall not be subject to
  144  forfeiture.
  145         (p) A policy or contract providing any hospital, medical,
  146  prescription drug, or other health care benefits pursuant to
  147  Medicare part C or part D of subchapter XVIII, chapter 7 of
  148  Title 42 of the United States Code, commonly known as Medicare
  149  Parts C and D; subchapter XIX, chapter 7 of Title 42 of the
  150  United States Code, commonly known as Medicaid; or any
  151  regulations promulgated thereunder issued pursuant to Medicare
  152  Part C or Part D.
  153         (q) Structured settlement annuity benefits to which a
  154  payee, or a beneficiary if the payee is deceased, has
  155  transferred his or her rights in a structured settlement
  156  factoring transaction, as that term is defined in 26 U.S.C. s.
  157  5891(c)(3)(A).
  158         Section 2. Present subsections (7) through (10) of section
  159  631.714, Florida Statutes, are redesignated as subsections (8)
  160  through (11), respectively, and a new subsection (7) is added to
  161  that section, to read:
  162         631.714 Definitions.—As used in this part, the term:
  163         (7) “Long-term care assessment obligations” means the long
  164  term care impairment and long-term care insolvency assessment
  165  obligations of the association which are subject to assessment
  166  pursuant to ss. 631.715(2)(a)1. and 631.718(3)(b) in
  167  coordination with the Health Maintenance Organization Consumer
  168  Assistance Plan, through a methodology provided in the
  169  association’s plan of operation. All obligations other than
  170  long-term care assessment obligations are subject to assessment
  171  exclusively by the association in accordance with s.
  172  631.718(2)(b) and (3)(c), without contribution or involvement of
  173  the Health Maintenance Organization Consumer Assistance Plan.
  174         Section 3. Subsection (1) of section 631.716, Florida
  175  Statutes, is amended to read:
  176         631.716 Board of directors.—
  177         (1)(a) The board of directors of the association shall have
  178  at least 9, but no more than 11, members. The members shall be
  179  comprised of not fewer than five nor more than nine member
  180  insurers, serving terms as established in the plan of operation
  181  and 1 Health Maintenance Organization Consumer Assistance Plan
  182  director confirmed pursuant to paragraph (b). At all times, at
  183  least 1 one member of the board must shall be a domestic insurer
  184  as defined in s. 624.06(1). The members of the board who are
  185  member insurers shall be elected by member insurers, subject to
  186  the approval of the department.
  187         (b) The board shall confirm, subject to the approval of the
  188  department, the Health Maintenance Organization Consumer
  189  Assistance Plan director. The director confirmed to the board
  190  must be designated by the Health Maintenance Organization
  191  Consumer Assistance Plan’s board of directors to serve on the
  192  board and represent the interests of the Health Maintenance
  193  Organization Consumer Assistance Plan and its board of
  194  directors. An individual serving as a Health Maintenance
  195  Organization Consumer Assistance Plan director on the board must
  196  be a member of the Health Maintenance Organization Consumer
  197  Assistance Plan. The Health Maintenance Organization Consumer
  198  Assistance Plan director, or his or her designee, has the right
  199  to be present at all meetings of the board and has full voting
  200  rights on all issues.
  201         (c) A vacancy on the board shall be filled for the
  202  remaining period of the term by a majority vote of the remaining
  203  board members, subject to the approval of the department. Prior
  204  to the selection of the initial board of directors and the
  205  organization of the association, the department shall give
  206  notice to all member insurers of the time and place of the
  207  organizational meeting. At the organizational meeting, each
  208  member insurer shall be entitled to one vote, in person or by
  209  proxy. If the board of directors is not elected within 60 days
  210  after notice of the organizational meeting, the department may
  211  appoint the initial members.
  212         Section 4. Present subsections (9) through (12) of section
  213  631.717, Florida Statutes, are redesignated as subsections (12)
  214  through (15), respectively, new subsections (9), (10), and (11)
  215  are added to that section, subsections (2) and (3), paragraph
  216  (c) of present subsection (9), and paragraph (g) of present
  217  subsection (12) are amended, and paragraph (h) is added to
  218  present subsection (12) of that section, to read:
  219         631.717 Powers and duties of the association.—
  220         (2) If a domestic insurer is an insolvent insurer, the
  221  association shall, subject to the approval of the department:
  222         (a) Guarantee, assume, reissue, or reinsure, or cause to be
  223  guaranteed, assumed, reissued, or reinsured, the covered
  224  policies of persons referred to in s. 631.713(2); and
  225         (b) Provide moneys, pledges, notes, guarantees, or other
  226  means that are proper and reasonably necessary to implement
  227  paragraph (a) in order to assure payment of the contractual
  228  obligations of the insolvent insurer with regard to persons
  229  referred to in s. 631.713(2).
  230         (3) If a foreign or alien insurer is an insolvent insurer,
  231  the association shall, subject to the approval of the
  232  department:
  233         (a) Guarantee, assume, reissue, or reinsure, or cause to be
  234  guaranteed, assumed, reissued, or reinsured, the covered
  235  policies of residents of this state; and
  236         (b) Provide moneys, pledges, notes, guarantees, or other
  237  means that are proper and reasonably necessary to implement
  238  paragraph (a) in order to assure payment of the contractual
  239  obligations of the insolvent insurer with regard to persons
  240  referred to in s. 631.713(2).
  241  
  242  However, this subsection does not apply when the department has
  243  determined that the foreign or alien insurer’s domiciliary
  244  jurisdiction or state of entry provides, by statute, protection
  245  substantially similar to that provided by this part for
  246  residents of this state.
  247         (9) For purposes of this part, benefits provided by a long
  248  term care rider to a life insurance policy or annuity contract
  249  are considered the same type of benefits as the base life
  250  insurance policy or annuity contract to which the rider relates.
  251         (10) In the event of a potential long-term care insurer
  252  impairment or insolvency, the association shall coordinate its
  253  activities with the Health Maintenance Organization Consumer
  254  Assistance Plan, including the development of any plan for
  255  handling the administration of the impairment or insolvency.
  256         (11) The association shall share information, including
  257  data, with and assist, as applicable, the board of directors of
  258  the Health Maintenance Organization Consumer Assistance Plan
  259  with the administration and collection of member health
  260  maintenance organization assessments for long-term care insurer
  261  impairments or insolvencies pursuant to ss. 631.715(2)(a)1.,
  262  631.718(3)(b), 631.818(2), and 631.819(2)(c).
  263         (12)(9) The association’s liability for the contractual
  264  obligations of the insolvent insurer must be as great as, but no
  265  greater than, the contractual obligations of the insurer in the
  266  absence of such insolvency, unless such obligations are reduced
  267  as permitted by subsection (4), but the aggregate liability of
  268  the association with respect to one life shall not exceed the
  269  following:
  270         (c) For all other benefits, including in long-term care
  271  policies, $300,000, including cash values, except as provided in
  272  paragraph (d).
  273  
  274  In no event is the association liable for any penalties or
  275  interest.
  276         (15)(12)
  277         (g) In carrying out its duties in connection with
  278  guaranteeing, assuming, reissuing, or reinsuring policies or
  279  contracts under subsections (2) and (3), the association may,
  280  subject to approval of the department receivership court, issue
  281  an alternative policy or contract to substitute coverage for a
  282  policy or contract providing that provides an interest rate,
  283  crediting rate, or similar factor that was determined by use of
  284  an index or other external reference stated in the policy or
  285  contract and employed in calculating returns or changes in value
  286  by issuing an alternative policy or contract. In lieu of the
  287  index or other external reference provided for in the original
  288  policy or contract, the alternative policy or contract must
  289  provide for a fixed interest rate, payment of dividends with
  290  minimum guarantees, or a different method for calculating
  291  interest or changes in value. In such case:
  292         1. There is no requirement for evidence of insurability,
  293  waiting period, or other exclusion that would not have applied
  294  under the replaced policy or contract.
  295         2. The alternative policy or contract shall be
  296  substantially similar to the replaced policy or contract in all
  297  other material terms.
  298         (h) In accordance with the terms and conditions of the
  299  policy or contract, the board may directly file for actuarially
  300  justified rate or premium increases for any policy or contract
  301  for which it provides coverage under this part.
  302         Section 5. Paragraph (b) of subsection (3), paragraph (a)
  303  of subsection (5), and subsection (8) of section 631.718,
  304  Florida Statutes, are amended to read:
  305         631.718 Assessments.—
  306         (3)
  307         (b)1. The amount of any Class B assessment, except for
  308  assessments related to long-term care insurance, must shall be
  309  allocated for assessment purposes among the accounts pursuant to
  310  an allocation formula, which may be based on the premiums or
  311  reserves of the impaired or insolvent insurer.
  312         2. The amount of the Class B assessment for long-term care
  313  insurance written by the impaired or insolvent insurer must be
  314  allocated according to a methodology included in the plan of
  315  operation and approved by the department. The methodology must
  316  provide for 50 percent of the assessment to be allocated to
  317  accident and health member insurers and 50 percent to be
  318  allocated to life and annuity member insurers.
  319         3. For the purposes of the methodology outlined in
  320  subparagraph 2. and included in the plan of operation, the
  321  accident and health member insurers’ share of the assessment
  322  must be calculated by including the assessable premiums of
  323  member health maintenance organizations of the Health
  324  Maintenance Organization Consumer Assistance Plan.
  325         (5)(a)1. The total of all assessments upon a member insurer
  326  for each account may not in any one calendar year exceed 1
  327  percent of the sum of the insurer’s premiums written in this
  328  state regarding business covered by the account received during
  329  the 3 calendar years preceding the year in which the assessment
  330  is made, divided by three. If premium information for the 3-year
  331  period is not reasonably available for each member insurer, the
  332  association may use any reasonably available premium
  333  information.
  334         2. For long-term care insurer impairments and insolvencies
  335  only, the total assessments upon a member insurer or member
  336  health maintenance organization of the Health Maintenance
  337  Organization Consumer Assistance Plan may not, in any one
  338  calendar year, exceed 0.5 percent of the sum of the member
  339  insurer or member health maintenance organization’s premiums
  340  written in this state regarding business covered by the account
  341  received during the calendar year preceding the year in which
  342  the assessment is made. If premium information is not reasonably
  343  available for each member insurer or member health maintenance
  344  organization of the Health Maintenance Organization Consumer
  345  Assistance Plan, the association or the Health Maintenance
  346  Organization Consumer Assistance Plan may use any reasonably
  347  available premium information.
  348         (8) The association shall issue to each member insurer
  349  paying an assessment under this part, other than a Class A
  350  assessment, a certificate of contribution, in a form prescribed
  351  by the department, for the amount of the assessment so paid. All
  352  outstanding certificates are of equal dignity and priority
  353  without reference to amounts or dates of issue. A certificate of
  354  contribution may be shown by the insurer in its financial
  355  statement as an asset in such form and for such amount, if any,
  356  and period of time as the department approves. However, any
  357  amount offset pursuant to s. 631.72 may not be shown as an asset
  358  of the insurer on any of its financial statements.
  359         Section 6. Paragraph (b) of subsection (1), paragraph (f)
  360  of subsection (3), and subsection (4) of section 631.721,
  361  Florida Statutes, are amended to read:
  362         631.721 Plan of operation.—
  363         (1)
  364         (b) If the association fails to submit a suitable proposed
  365  plan of operation within 180 days following October 1, 1979, or
  366  If at any time thereafter the association fails to submit
  367  suitable amendments to the plan, the department shall, after
  368  notice and hearing, adopt such reasonable rules as are necessary
  369  to effectuate the provisions of this part. Such rules shall
  370  continue in force until modified by the department or superseded
  371  by a proposed plan submitted by the association and approved by
  372  the department.
  373         (3) The plan of operation shall, in addition to
  374  requirements enumerated elsewhere in this part:
  375         (f) Establish any additional procedures for assessments
  376  under s. 631.718, including procedures to share assessment
  377  information, including data, with and assist, as applicable, the
  378  board of directors of the Health Maintenance Organization
  379  Consumer Assistance Plan with the administration, collection,
  380  and deposit of member health maintenance organization
  381  assessments for long-term care insurer impairments and
  382  insolvencies into the health account established under s.
  383  631.715.
  384         (4) The plan of operation may provide that any or all
  385  powers and duties of the association, except those under ss.
  386  631.717(13)(c) and 631.718 ss. 631.717(10)(c) and 631.718, are
  387  delegated to a corporation, association, or other organization
  388  which performs or will perform functions similar to those of
  389  this association, or its equivalent, in two or more states. Such
  390  a corporation, association, or organization shall be reimbursed
  391  for any payments made on behalf of the association and shall be
  392  paid for its performance of any function of the association. A
  393  delegation under this subsection shall take effect only with the
  394  approval of both the board of directors and the department and
  395  may be made only to a corporation, association, or organization
  396  which extends protection not substantially less favorable and
  397  effective than that provided by this part.
  398         Section 7. Section 631.738, Florida Statutes, is created to
  399  read:
  400         631.738 Applicability as to certain member insurers.—The
  401  provisions of this part which relate to long-term care
  402  assessment obligations do not apply to any member insurer that,
  403  on or before the effective date of this act, has been adjudged
  404  insolvent by a court of competent jurisdiction or has been
  405  determined by the department to be impaired.
  406         Section 8. Subsection (7) is added to section 631.816,
  407  Florida Statutes, to read:
  408         631.816 Board of directors.—
  409         (7) Subject to the approval of the department, the board
  410  shall designate one representative to serve as a member of the
  411  board of directors of the Florida Life and Health Insurance
  412  Guaranty Association pursuant to s. 631.716(1). The
  413  representative, or his or her designee, has the right to be
  414  present during all meetings of the association board of
  415  directors and shall have full voting rights.
  416         Section 9. Present subsections (2) through (6) of section
  417  631.818, Florida Statutes, are redesignated as subsections (3)
  418  through (7), respectively, a new subsection (2) is added to that
  419  section, present subsection (4) is amended, present paragraph
  420  (f) of present subsection (6) is redesignated as paragraph (g),
  421  and a new paragraph (f) is added to that subsection, to read:
  422         631.818 Powers and duties of the plan.—
  423         (2) In the event of a long-term care insurer impairment or
  424  insolvency, pursuant to s. 631.819(2)(c), the plan shall:
  425         (a)Collect and transmit all information requested by the
  426  Florida Life and Health Insurance Guaranty Association for the
  427  association to determine the appropriate assessment base of the
  428  health insurance account pursuant to ss. 631.715(2)(a)1. and
  429  631.718(3)(b).
  430         (b)Levy and collect assessments from HMOs.
  431         (c)Coordinate the administration and collection of member
  432  HMO assessments for long-term care insurer impairments and
  433  insolvencies with the Florida Life and Health Insurance Guaranty
  434  Association.
  435         (5)(4) The plan may render assistance and advice to the
  436  department, at the department’s request, concerning
  437  rehabilitation, payment of claims, continuance of coverage, or
  438  the performance of other contractual obligations of any HMO
  439  subject to a delinquency proceeding or a proceeding under s.
  440  624.90.
  441         (7)(6) The plan may:
  442         (f) In the event of a long-term care insurer impairment or
  443  insolvency, coordinate with the Florida Life and Health
  444  Insurance Guaranty Association to carry out the responsibilities
  445  of the association for the limited purpose of the long-term care
  446  insurer impairment or insolvency, including the development of
  447  any plan for handling the administration of the impairment or
  448  insolvency.
  449         Section 10. Subsections (1) and (3) of section 631.819,
  450  Florida Statutes, are amended, paragraph (c) is added to
  451  subsection (2), and subsection (6) is added to that section, to
  452  read:
  453         631.819 Assessments.—
  454         (1) For the purposes of providing the funds necessary to
  455  carry out the powers and duties of the plan, the board of
  456  directors shall assess the member HMOs at such time and for such
  457  amounts as the board finds necessary. Assessments shall be due
  458  not less than 30 days after written notice to the member HMOs
  459  insurers.
  460         (2) Assessments for funds to meet the requirements of the
  461  plan with respect to an insolvent HMO shall not be made until
  462  necessary to implement the purposes of this part. In order to
  463  carry out its duties and powers under this part, upon the
  464  insolvency of an HMO, the plan shall levy and collect
  465  assessments as follows:
  466         (c) For the purposes of long-term care insurer impairment
  467  and insolvency assessments under s. 631.718(3)(b), member HMOs
  468  must be assessed in the same manner as member insurers of the
  469  Florida Life and Health Insurance Guaranty Association under
  470  part III of this chapter. Long-term care insurer impairment and
  471  insolvency assessments must be levied and collected by the plan
  472  pursuant to this part, deposited into the health insurance
  473  account established under s. 631.715, and used solely for long
  474  term care insurer impairment or insolvency obligations.
  475  Assessments collected from member HMOs are considered part of
  476  and satisfy the obligations of the health insurance account
  477  under ss. 631.715(2)(a)1. and 631.718(3)(b).
  478         (3) All assessments against HMOs, including long-term care
  479  insurer impairment and insolvency assessments, must shall be
  480  levied as a percentage of annual earned premium revenue for non
  481  Medicare and non-Medicaid contracts. In no event may the plan
  482  assess in any calendar year more than 0.5 percent of each HMO’s
  483  annual earned premium revenue for non-Medicare and non-Medicaid
  484  contracts.
  485         (6)The plan shall issue, in a form prescribed by the
  486  department, a certificate of contribution to each member HMO
  487  paying a long-term care insurer impairment or insolvency
  488  assessment under this part for the amount of the assessment so
  489  paid. All outstanding certificates are of equal dignity and
  490  priority without reference to amounts or dates of issue. A
  491  certificate of contribution may be shown by the member HMO in
  492  its financial statement as an asset in such form and for such
  493  amount and period of time as the department approves. However,
  494  any amount offset pursuant to s. 631.828 may not be shown as an
  495  asset of the member HMO on any of its financial statements.
  496         Section 11. Paragraph (f) of subsection (3) and paragraph
  497  (a) of subsection (4) of section 631.820, Florida Statutes, are
  498  amended to read:
  499         631.820 Plan of operation.—
  500         (3) The plan of operation shall, in addition to
  501  requirements enumerated elsewhere in this part:
  502         (f) Establish any additional procedures for assessments
  503  under this part, including procedures to coordinate the
  504  administration and collection of member HMO assessments for
  505  long-term care insurer impairments and insolvencies with the
  506  board of directors of the Florida Life and Health Insurance
  507  Guaranty Association.
  508         (4)(a) The plan of operation may provide that any or all
  509  powers and duties of the plan, except those under ss.
  510  631.818(7)(b) and (c) and 631.819 ss. 631.818(6)(b) and (c) and
  511  631.819, are delegated to an administrator that which may be a
  512  corporation, association, or other organization that which
  513  performs or will perform functions similar to those of this
  514  plan, or its equivalent.
  515         Section 12. Subsection (2) of section 631.821, Florida
  516  Statutes, is amended to read:
  517         631.821 Powers and duties of the department.—
  518         (2) Any action of the board of directors of the plan may be
  519  appealed to the office by any member HMO if such appeal is taken
  520  within 21 days of the action being appealed; however, the HMO
  521  must comply with such action pending exhaustion of appeal under
  522  s. 631.818(2). Any appeal shall be promptly determined by the
  523  office, and final action or order of the office shall be subject
  524  to judicial review in a court of competent jurisdiction.
  525         Section 13. The Division of Law Revision is directed to
  526  replace the phrase “the effective date of this act” wherever it
  527  occurs in this act with the date this act becomes a law.
  528         Section 14. This act shall take effect upon becoming a law.